The material on this website is for information only
and is not intended as any recommendation or endorsement of any products or companies mentioned. We are not licensed by the FSA to give financial advice, and none of the material on this website constitutes or is intended to constitute financial ...
News
This is MoneyUK regions with the biggest mortgage debt revealedThis is MoneyMortgage holders in pockets of London such as Newham and Tower Hamlets along with those in towns on the outskirts such as Barking, Crawley and Harlow are the most at risk if the Bank of England raises interest rates, data suggests. Those who have ...
Irish IndependentRise in number of those who think now is good time to save following USC cutIrish IndependentCharlie Weston, Personal Finance Editor ... The Nationwide UK (Ireland) savings index shows those under the age of 50 feel Government policy is encouraging them to save, especially the reduction in the universal social charge (USC). Younger people ...
Telegraph.co.ukLord Turner warns on peer-to-peer: this is what the 'stress tests' showTelegraph.co.ukWhen bankers ploughed investors' money into the mortgage market before the credit crisis in 2008, they took on more and more risky borrowers. A similar spiral could conceivably happen, warned Neil Faulkner of 4thWay, a risk rating agency. There is a ...and more »
3 Major Movers Worth Buying Today? Domino's Pizza Group PLC, Pinewood Group PLC And CPP Group PlcAOL Money UKBut with the credit card insurer reporting an operating profit of around £2.2m in its interim results last year, it appears to be making progress towards becoming a more financially stable and resilient business. And with a debt restructuring having ...and more »
The IndependentMoney Video round-up: mortgage rates, bank accounts, energy bills and free stuffThe IndependentThe Bank of England has kept rates at 0.5 per cent for seven years now, but borrowers who think they're on a great low deal should think again. Complacency could mean them missing out on even better deals, with two year fixed rates on offer at less ...Will UK interest rates be on hold for another four years?The Week UKall 4 news articles »
Have you met...
Latest Members:


RinjaniHalomi


doaanile7


donjuancuk


jakibadr


Sloane Beck


jappleseed


LynneW72

 

General News

Email this story to a friend:

LANDLORDS URGED TO PROTECT THEMSELVES AS UNEMPLOYMENT HITS TENANTS

Unemployment among new tenants in the private rented sector has risen to 7.8%, up from just 3.1% twelve months ago, according to Smartlandlord.co.uk, the property services website for landlords.21-04-2009

Over 40% of the UK’s 2 million unemployed are aged under 25 – and in that age group people usually rent so the private rented sector has been hit hard by the current economic downturn.  By far the worst hit area is Northern Ireland, where unemployment among new private rented tenants is now nearly 17%.

Keshav Thukaram, managing director of Smartlandlord.co.uk, commented: ‘With the social housing sector ill equipped to cope with extra demand, private landlords are increasingly being called upon to take in unemployed people on benefit.  With oversupply in the rented sector due to reluctant landlords, taking in DSS tenants can be a good way to secure a regular income in the current environment.  But there is evidence that some landlords are suffering because benefits aren’t being paid on time, so landlords taking this route must ensure they know their rights, and apply to have the rent paid directly by the council if they experience problems.’

With the regular employment market in turmoil, there has also been a rise in the number of self-employed tenants, up from 7.8% to 8.4% annually; and a slow but sustained growth in the number of retirees, from 7.8% to 8.1%.

 The proportion of new tenants which are students is very seasonal, and usually peaks in July and August as landlords reference tenants before the start of the new university year.  But with many of those who have lost their jobs going back into education, the proportion of new tenants which are students has risen from 0.2% last April, to 4.1% now. 

Keshav Thukaram warned: ‘With the occupation of tenants diversifying from traditional employment, landlords need to make sure they reference tenants to ascertain they can afford the property, and ask for guarantors where necessary. 

 But tenant referencing is an indication of a tenant’s past and current situation – it is no guarantee of the future.  In the current economic environment, any tenant, whatever their employment may find themselves in financial difficulty due to some unexpected loss of income.  This means landlords need to look at new ways to protect themselves, such as rent guarantee insurance and rent on time’

 

 

 

Advertise with us  |  Privacy  |  Terms & Copyright                                                                                     Website maintained by USP Networks